I am sure that everyone is fully aware that China is suffering an economic slowdown /slump. However you word it the Chinese economy is at best treading water and at worse shrinking. While the eyes of the world has focused on the stock market in general we of course are going to look the impact this is having on our industry.
I’ve pointed out before that an indicator of economic growth can be measured by the amount of construction projects. To that end it is interesting that China, no matter Baijing says to placate the worlds worries about their economic long term viability ,is currently experiencing a substantial decline in new construction projects. A warning sign. The impact on our industry is alarming.
China had been importing large quantities of forest products for use in house and work place construction projects ,however, 2015 showed a dramatic decline in the importation of sawnlogs and wood products.Demand fell by a quarter. It must also be said that the price that was paid for the declining imports also fell.
To further highlight China’s economic difficulties demand for home sourced products forest products has also fallen.
The only joy is for exporters of high end timber,Sweden and Finland. For the rest of us the search for new markets, if not already started is well overdue.
A case of too many countries relying on China to help them grow.